When the industry pays multiples, traditionally it is for contracts only; assets are separate. This is a fantastic multiple being paid, agreed, though I suspect their attrition rate would be less, as most of the systems were leased systems,which would be a financial obligation on the consumers part.
Why such a high multiple? If a US based corp. wanted to enter into another country quickly with coast to coast installations including two monitoring stations, it may have been the least expensive way to do so.
ROGERS COMPLETES SALE OF SECURITY DIVISION
12:33 EST Tuesday, June 30, 1998
Canada NewsWire
TORONTO, June 30 /CNW/ - ROGERS COMMUNICATIONS INC. (RCI) (Toronto: RCI.A and RCI.B; NYSE: RG) today announced that its wholly owned subsidiary, Rogers Cablesystems Limited has completed the sale of its security alarm division, Rogers Canguard Inc. to Protection One, Inc. of Culver City, California for an undisclosed amount. Protection One is the second largest security alarm company in the United States, with over 1.3 million subscribers as of June 1, 1998.
At March 31, 1998, Rogers Canguard was Canada's fifth largest security alarm company with in excess of 35,000 subscribers and Cdn$700,000 in monthly recurring revenue. Rogers Canguard has a strong presence in residential, commercial and wholesale alarm markets in Vancouver, Toronto and Ottawa.
Rogers Cablesystems Limited, Canada's largest cable network operator, provides high quality entertainment, information and communication services to approximately 2.2 million customers in Ontario and British Columbia. Its hybrid fibre-coaxial network is ideally suited for delivering interactive products and services that require significant bandwidth, such as Rogers(at)Home. The company also owns and operates over two hundred Rogers Video stores. |
